63 apartments and commercial space could come to this long-vacant South Milwaukee corner
A four-story, mixed-use building, complete with apartments and retail, may be built on a long-vacant corner in South Milwaukee.
Milwaukee-based AK Development is proposing the Canal Transit Housing project, a 64,000-plus-square-foot commercial building at 2318 10th Ave., where a gas station formerly operated. The concept includes 63 market-rate apartments (29 one-bedroom and 34 two-bedroom) and 5,000 square feet of commercial space. A parking lot in the rear could provide 26 spaces.
Renderings for the project list a lounge area and an 896-square-foot community room as amenities inside the building. Bench seating is shown along the building on 10th Avenue.
The land, owned by the City of South Milwaukee, is 0.70 acres. The former Amoco/BP gas station was demolished on the property, including removal of the underground fuel tanks, in 2018 after the property sat unused for over five years.
The project has been on the radar of South Milwaukee staff since early 2023 with preliminary plans for 39 apartments. Work was done throughout the year updating the proposal, leading to this latest version of the project.
What is the project cost and how will it be funded?
The project budget is $18,930,131 with approximately $12.6 million of the developer’s capital stack listed as WHEDA funds.
Additionally, the developer is requesting $1.5 million from South Milwaukee, according to City Administrator Patrick Brever. That help could come in the form of tax incremental financing district (TID 5), which was created in 2018 and includes this property plus the former Bucyrus Campus and portions of the downtown area along Milwaukee and Chicago avenues.
In a TIF district, property taxes go to pay off the debt used for public improvements and other purposes within the district. Once all the debt is paid and the district closes, the increased tax increment flows back to the city, schools and other agencies like other tax revenue.
The project could incorporate eight workforce housing units “for young people and youths aging out of foster care,” as stated in the application for tax incremental financing. Another portion of the documentation mentions the possibility of 13 units set aside for the same youths to be supported by Wisconsin Community Services.
What's the next step?
South Milwaukee’s Plan Commission is set to review the project on Feb. 27 and, if approved, the Common Council could vote on it as soon as March 5.
“If approvals are granted by the Plan Commission and Common Council, construction is projected to start in April 2025 with completion in May 2026,” Brever said.
Contact Erik S. Hanley at erik.hanley@jrn.com. Like his Facebook page, The Redheadliner, and follow him on X @Redheadliner.
This article originally appeared on Milwaukee Journal Sentinel: 63 apartments and commercial space could come to South Milwaukee
